The ITO, Ward 5(2),, Ahmedabad v. Ocmi Glass Machinery Manufactures India Pvt.Ltd., Ahmedabad

ITA 2047/AHD/2013 | 2009-2010
Pronouncement Date: 06-10-2016 | Result: Dismissed

Appeal Details

RSA Number 204720514 RSA 2013
Assessee PAN AAACO7995D
Bench Ahmedabad
Appeal Number ITA 2047/AHD/2013
Duration Of Justice 3 year(s) 2 month(s) 4 day(s)
Appellant The ITO, Ward 5(2),, Ahmedabad
Respondent Ocmi Glass Machinery Manufactures India Pvt.Ltd., Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 06-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 06-10-2016
Date Of Final Hearing 18-08-2016
Next Hearing Date 18-08-2016
Assessment Year 2009-2010
Appeal Filed On 02-08-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER ./ ITA NO. 2047/AHD/2013 / ASSESSMENT YEAR : 2009-10 INCOME-TAX OFFICER WARD 5 (2) AHMEDABAD VS OCMI GLASS MACHINERY MANUFACTURES INDIA PVT LTD 202 2 ND FLOOR PARITOSHY USMANPURA (RIVERSIDE) USMANPURA AHMEDABAD-13 PAN : AAACO 7995 D / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI SATISH SOLANKI SR DR ASSESSEE BY : NONE (WRITTEN SUBMISSION) / DATE OF HEARING : 18/08/2016 / DATE OF PRONOUNCEMENT: 06/10/2016 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-XI AH MEDABAD DATED 28.052013 FOR ASSESSMENT YEAR 2009-10. 2. FOLLOWING GROUNDS ARE RAISED :- I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE DISALLOWANCE OF SALARY RS.35 06 247/- PAID TO SHRI TUSHAR MAJMUD AR CEO OF THE ASSESSEE-COMPANY. II) THE LD. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACT S IN NOT APPRECIATING THAT THE INCREASED SALARY WAS ON ACCOUNT OF CLOSURE OF BUSINESS BY THE CEO AS EVIDENT FROM THE EXPLANATION GIVEN BY THE A SSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 3. LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT SIMIL AR SALARY WAS DISALLOWED IN AYS 2007-08 AND 2008-09. ON ASSESSEE S APPEAL THE LD. CIT(A) ALLOWED THE CLAIM AGAINST WHICH DEPARTMENT HAS NOT FILED ANY APPEAL. SMC-ITA NO. 2047/AHD/2013 ITO VS. OCMI GLASS MACHINERY AY : 2009-10 2 3.1 SIMILARLY IN AY 2010-11 SAME SALARY HAS BEEN ALLOWED BY THE AO IN ASSESSMENT FRAMED U/S 143(3) OF THE ACT. THEREFORE THE DEPARTMENT HAVING ACCEPTED THE ALLOWABILITY OF PAYMENT OF SALARY TO S HRI TUSHAR MAJMUDAR CEO OF THE ASSESSEE-COMPANY IN ALL THESE YEARS THE RE IS NO JUSTIFICATION IN THIS REVENUE APPEAL. 4. ON THE OTHER HAND LD. DR DID NOT DISPUTE THESE FACTS. 5. I HAVE HEARD THE RIVAL CONTENTIONS PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. SINCE THE ISSUE ABOUT ALLOWABILITY OF SALARY TO SHRI TUSHAR MAJMUDA R BEING ALLOWABLE STANDS ACCEPTABLE BY THE REVENUE IN AYS 2007-08 20 08 09 AND 2010-11 THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A) FOR THE IMPUGNED YEAR I.E. AY 2009-10. IN VIEW THEREOF THE ORDER OF THE LD. CIT (A) IS UPHELD AND THE REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 6 TH OCTOBER 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 06/10/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER TRUE COPY / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD